French Economy Expanded Less Than Initially Estimated in Third Quarter
The French economy, the euro region’s second largest, grew at a weaker pace than previously estimated in the third quarter as companies cut spending.
Gross domestic product rose 0.3 percent from the second quarter, when it fell 0.1 percent, French statistics institute Insee in Paris said today. It had previously reported a gain of 0.4 percent. In the year, the economy expanded 1.5 percent, down from 1.7 percent in the previous quarter.
The French economy is probably already in recession, with output shrinking this quarter and next, Insee said last week. While French business confidence dropped to the lowest in 1 1/2 years in December and manufacturing contracted, government leaders have refused to use the word recession, saying France is in a “slowdown” or an “air pocket.”
French investment growth slowed to 0.2 percent in the third quarter from 0.6 percent in the previous three months, today’s report showed. Consumer spending increased 0.3 percent after dropping 0.6 percent in the second quarter and exports advanced 0.8 percent, up from 0.7 percent.
The weaker-than-initially-estimated growth in the third quarter was due to revisions to industrial production as well as to new figures on company revenues, Insee said.
To contact the reporter on this story: Gregory Viscusi in Paris at gviscusi@bloomberg.net
To contact the editor responsible for this story: James Hertling at jhertling@bloomberg.net
Rate These Stories
Rate this Page